Buying a new home can be both exciting and nerve wracking. See the new article on auctions at the bottom of the page. When you are purchasing a home in a new country it can certainly come with added challenges. Before you start your search for your new home there are a number of things you may want to consider:
- Decide what style of housing you are looking for and where you want to live. You can check out our Where to Live section to get you started.
Research the market – there are a number of tools available which allows you to check recent sales in the area, and research expected future economic trends. To search for properties check out www.ourproperty.com.au, or Mandarin speakers may prefer to use www.gifang.com. You may also want to look at www.realestate.com.au and www.domain.com.au . Websites such as www.myrp.com.au offer suburb profiles and recent sales reports. Local estate agents will also have access to this information so you can price compare.
- Know the costs involved in buying property and also potential ongoing costs of owning property.
- Do you require finance to complete your purchase?
- Are you eligible to purchase property in Australia?
What is the process involved in buying property in Australia?
Make Sure you are you eligible to purchase property in Australia? As a non-permanent resident there may be restrictions around your ability to purchase property. The Foreign Investment Review Board of Australia processes all applications for non-permanent residents
For further information please refer to: http://www.firb.gov.au
Prepare a budget and understand your financial position. If you require finance to assist with your purchase there are a number of financing options available. The home loan market in Australia is very competitive providing you a variety of many different lenders with even more product options. Although this competition is ultimately good for the consumer, finding the best deal can often be complex and time consuming. This can be further complicated by the fact that each lenders credit policy varies greatly when lending to non-permanent residents. An accredited Mortgage Broker will have access to a number of lender and product options and can save you time and money as they have the expertise to find you the correct loan from hundreds of options. They will be able to present you a number of different options outlining all the costs and terms associated
Engage a solicitor/conveyancer - Once you have made the decision to purchase your new home it is highly recommended that you engage a solicitor/conveyancer who will be able to guide you through all the legal aspects of your purchase. Use FindLaw directory to begin your search.
A few handy hints:
1. Deposit – most lenders will require you to have a minimum deposit of 20% of the purchase price. Some lenders do provide products that allow for a smaller deposit however this will depend on your individual circumstances.
2. Pre-approval – finance pre-approval allows you to bid at auction and submit offers with confidence knowing that your finance has been conditionally approved. Pre-approval are generally valid for 3 months while you search for your new home. Would you like to apply for a pre-approval?
3. Required documentation – This will vary from lender to lender however generally speaking you will be required to provide ID, evidence of income, and details around your current financial position.
Know the costs involved in purchasing a home in Australia
- There are a number of costs involved when purchasing property, as well as before and after you buy. These are some costs which you can expect to pay:
- Stamp Duty of Transfer – this will vary depending on which state you. Use the Office of State Revenue calculator
- Building and Pest Reports – it is highly recommended that building a pest reports be obtained
- Legal and conveyancing costs
- Financing costs – this will vary from lender to lender
- Home and contents insurance
- Moving costs and utilities
- Ongoing council rates
- Ongoing body corporate/strata fees – these are generally payable when purchasing apartments and units
First Home Buyers Grant: If you are a permanent resident you might be entitled to a first home owner’s grant of $7000.There are some conditions but it is worth checking out.
Making an offer – there are two main methods of purchasing property in Australia
1. Auction – properties are usually sold by auction when demand is high. If you are the successful bidder you will be required to immediately pay a 10% deposit and the contract will be unconditional as such before going to auction it would be advisable to ensure you are in a position to settle on the purchase.
2. Private Sale – is when a property is offered for sale at a negotiated price. The normal practice is for the vendor (the current owner of the property) to set the price and you negotiate with them until a mutually agreeable price is reached. The terms of the contract can vary however it is generally accepted that a 10% deposit is required on exchange of the contract.
Contract of sale – the contract of sale is generally prepared by the agent or the vendor’s solicitor. Ensure that you have your solicitor/convenyancer review the Contract of Sale before you sign anything.
Settlement Process – once unconditional on the purchase your solicitor/conveyancer will handle most pre-settlement conditions and will liase with all relevant stakeholders.
Where to see the best theatre in Melbourne for free- at an auction!
If you love a show and want to educate yourself on the Melbourne property market for free then it is absolutely worth attending an auction. The home will be open for half an hour before the auction so that you can inspect the property for one last time. This is an opportunity to spot the vendor who will sometimes be coming up close and personal with the people who may potentially be buying the home. You may also spot the friends of the vendor who will be making loud comments about how light the house is, how big the living space is and what a great view it is from the bedroom window! If you are very clever you might spot the people who will be bidding: they will be checking out their opposition or who they perceive that opposition to be. When everyone is ushered out into the garden the theatrics begin. The auctioneer, if he is worth his salt, will be flambouyant and be able to talk the house up. No matter where it is, it will have enormous potential, be in one of the best streets and in a highly sought after suburb! At this point you may notice the potential bidders eyeing the crowd for reactions. When the auctioneer starts to explain how to make a bid, you see the non bidders place their hands firmly in their pockets and warn their partners not to sneeze, stretch or wave away flies! Then the auction begins. Nothing! No hands going up, not a word being spoken, silence where you can hear a pin drop. The auctioneer moves like a snake charmer, his voice coercing the first bid out of the crowd but the crowd is looking at him blankly. Finally back left, the first bid is well within the range the agent suggested but he is unimpressed. Another reminder of the fine house, great street, excellent buying coerces a second bid not much greater than the first. The auctioneer wheedles another bid from back left and then says that he must ask his vendors for instruction. He goes into the house, and the crowd shfts around restless, and then he is out again with doubled enthusiasm and now the bids are coming left, right, centre. The house is on the market, it is really going to be sold! How can the auctioneer keep up with the bids, keep track of who is bidding and how much? Thick and fast the bids come, way past the suggested range, then way, way past the suggested range and then outrageously past the suggested range. The house is soaring, the bidders are looking less confident, the neighbours are looking smug! Finally, the last bid is squeezed out and two biddres turn on their heels and leave the fray! All done! First Call. Second Call. Third and Final Call. Down comes the hammer and the crowd disperses leaving a man with a cheque book and two agents in suits to complete the transaction on the kitchen table.